WASHINGTON, D.C. — A Texas-based national rehabilitation company has agreed to pay $6.1 million to settle allegations by the federal government that it paid kickbacks to nursing homes and physicians for Medicare patients in violation of the False Claims Act (FCA).
According to the U.S. Department of Justice (DOJ) Reliant Rehabilitation Holdings Inc., (Reliant) offered company-employed nurse practitioners to work at client nursing homes without charge or at a nominal, below fair market fee as a reward for contracting with Reliant for their resident's rehab therapy.
The DOJ also alleges Reliant submitted claims to Medicare that were "tainted by improper contracts" between the company and nursing home physicians. The contracts offered above fair market compensation for supervising and collaborating with Reliant's nurses in exchange for the nursing home's therapy business, the DOJ said.
“The Justice Department is committed to investigating and routing out any improper financial relationships between health care providers that have the potential to undermine patient care and trust,” Justice Department Civil Division acting assistant attorney general Chad Readler said in a statement. “This settlement demonstrates our commitment to protecting the integrity of the Medicare program.”
“Companies that work to secure patient referrals by providing kickbacks inject improper financial considerations into our health care system,” added Northern District of Texas U.S. attorney Erin Nealy Cox.
The allegations against Reliant stem from an investigation that was launched due to a whistleblower report, the DOJ said.